Here’s how states can help rein in abuse of federal tax loopholes

states-rein-in-federal-tax-loophole-abuseHere’s how to step up the effort against corporate abuse of federal tax laws: get the states to deny their own state tax subsidies to the same abusive corporations that egregiously exploit federal tax loopholes.

Let’s remember that plenty of big corporations are already getting billions in state subsidies while making record profits, polluting the community, and ripping off their workers. Take the innocuous-sounding “inversion” loophole, most recently associated with Burger King, which allows a larger U.S. corporation to merge with a smaller foreign company to avoid U.S. taxes. In such cases, why should a state stand by and do nothing while a company continues to enjoy state taxpayer-funded subsidies?

For more information, see “Companies Exploiting Corporate Inversions Shouldn’t Be Getting New Jersey Tax Subsidies,” New Jersey Policy Perspective (2014). Also be sure to check out Good Jobs First’s state-by-state corporate subsidy tracker and corporate violations tracker.